When it comes to real estate, the topic of the day is the
downturn in the market, the number of people losing their
homes, and how much this is going to hurt the economy. In
the seventeen years I have been in the real estate
business, I have witnessed every fluctuation the market has
to offer. While it is true that many property owners are
enduring trying times, rarely does the same happen to
knowledgeable real estate investors.
There are those individuals who remain emotionally
unattached and invest wisely in real estate. As a result,
they live a very comfortable, if not lavish, lifestyle.
Investing in real estate, especially during a downturn, can
widen an investor's opportunities and bring about lucrative
returns. This is a truth. If you are thinking about
becoming a real estate investor or have already made the
decision to start, the following information is priceless.
Wanting to secure a comfortable financial future, most of
us go to work every day hoping to build a nest egg. Since,
it is common knowledge that real estate investors have the
capacity to not only build a nest egg but also create a
fortune, why aren't more people joining the ranks of real
estate multimillionaires? Why aren't there more people
fighting for a seat on the real estate bandwagon?
Well, the truth behind real estate investing is that it is
a business and therefore, must be treated like one for it
to prosper. Just like any other promising venture,
investing in real estate requires a well-defined vision, a
strategic plan, and an entrepreneurial mindset. Even with
the overwhelming evidence revealing success, only a
microscopic segment of the population is willing to take
the risk, do the work and follow through. The rest simply
watch and call those of us doing the work "Lucky".
When I began my career in real estate, I didn't have a
plan. I didn't invest. I didn't even see past my next
commission check. What kept me hanging on was a desire to
live like the people I worked for, most of whom were real
estate investors. Years later, I committed to create
serious wealth through real estate. As soon as I mindfully
committed to my goal, I began to make deals and more money
than ever before.
By choice, I am not one of those investors who vacations
six months out of the year. I work all the time meeting
with clients, looking at properties and refining my
strategy. Add to that a growing number of
mentoring/coaching clients and my schedule is officially
full. Nevertheless, I am continuously increasing my net
worth as I am doing something that never feels like work.
Besides creating amazing wealth, being your own boss and
having a place or two to call home, owning a real estate
investing business has many other advantages. The following
five play a special role for the novice investor.
1. Safe Investment
When we use a timeline to compare the real estate market to
other investments, such as the stock market, it is easy to
see that real estate continues to increase in value over
time without any serious instability. Although, there is
currently a housing crisis in various parts across the
country, every indicator points out that what we are
actually experiencing is a readjustment of highly inflated
real estate prices. Just as prices may be dropping, in time
they will undoubtedly increase. In contrast, the stock
market has put investors through a dizzying rollercoaster
ride made up of swift highs and abrupt lows throughout
history. Regardless of what type of market we are in, it is
clear that an investment in real estate guarantees a profit
over time.
2. No Cash Necessary
For beginning real estate investors, sometimes the only
investment they can make is their time. For every real
estate investor, finding a lucrative deal is as good as
striking oil. There are plenty of seasoned investors with
money in their pockets itching to buy a piece of discounted
property. Wholesalers often utilize this method. Therefore,
if you are new to the game, consider finding a deal, tying
it up and connecting with an investor who can take it off
your hands...for a price, of course.
3. Almost Anyone Can Do It
Real estate is such a lucrative field that it opens doors
to countless amateur investors everyday. There are how-to
books and seminars at every turn teaching would-be
investors a myriad of ways to make huge profits in the real
estate market. While it is true that overnight success is
practically unheard of, anybody with the heart, mind and
determination can make it big in real estate. The keys are
to continue learning and to monitor market conditions.
4. Leveraging Power
While novice investors can turn a quick profit by
wholesaling their deals, Buy-and-Hold investors can yield a
profit by borrowing against (leveraging) their properties.
Typically, lenders will allow holders of owner-occupied
property to borrow up to ninety-five percent of their
property's value and up to eighty-percent of non-owner
occupied units. This means that you can either purchase
property with a minimal out-of-pocket investment or acquire
financing that will allow you to pull cash out of your
property's equity to use for future ventures.
5. Tax Breaks
The popular 1031 exchange and depreciation are just two of
them. The United States government has set up multiple tax
breaks favoring real estate investors. Owning real estate
with the goal of making a profit allows you to deduct
interest payments, repairs, and vacancies among other
expenses when preparing your tax return. It is important to
note that purchasing real estate makes economic sense; it
should not be purchased solely for the tax benefits.
Ultimately, owning a real estate business is the way to
achieve financial freedom regardless of economic
conditions. Whether you quit your job and dive right in or
you work at it in your spare time, you can make it happen.
Worthwhile benefits are waiting faithfully for the taking.
----------------------------------------------------
Brenda Coté is a Real Estate Investor, Real Estate
and Mortgage Broker, Mentor, and Wealth Coach. At
Transforming Lives, Creating Wealth, Brenda employs a
"whole person" approach to support female Real Estate
Investors succeed in business and life. To receive a FREE
copy of Brenda's Report, "The Seven Biggest Mistakes Women
Make When Creating Wealth Thru Real Estate" please go to:
http://www.TransformingLivesCreatingWealth.com
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